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Full text of "100 AC,LIBERTY DIST MARCH 5, 2008"

LEASE MODIFICATION 
LEASE # 26549 



?ook 869 »be1S3 



THIS AGREEMENT, Made and entered into this 5th day of March, 2008. by and 
between Jack R. Hammers, a married man dealing in his sole and separate property, 

whose address is 165 Oakmont Road, Wheeling WV 26003, parties of the first part, 
hereinafter called "Lessors", and CHESAPEAKE APPALACHIA, L.LX., an Oklahoma 
limited liability company, the surviving entity of the merger with Columbia Natural 
Resources, LLC (formerly known as Columbia Natural Resources, Inc.) of 900 Pennsylvania 
Avenue, Charleston, West Virginia 25302, party of the second part, hereinafter called 
"Sublessee" as acknowledged and agreed by Columbia Gas Transmission Corporation, 
hereinafter called "Sublessor"; 



THAT WHEREAS, by agreement dated January 3 rd , 1962 . T. J. Yoho. et al granted 
to The Manufacturers Light and Heat Company , predecessor in title to Sublessor, as lessee 
thereunder, an oil and gas lease covering a tract of land containing 100.00 acres, more or less, 
situate in Liberty District, Marshall County, West Virginia, and recorded in the Clerk of the 
County Commission in Book 353 at Page L4i; and 

WHEREAS, said agr e ement dat e d , was modifi e d by agre e m e nt 

dated by and , predecessor 

in titl e to Columbia Gas Transmission Corporation, to provid e for th e production and storag e 
of natural gas, and r e cord e d in the Clerk of th e County Commission of County in Book 



WHEREAS, by sublease agreement dated September 2, 2004 and recorded in the 
Offices of the Clerks of the County Commissions of Marshall and Wetzel Counties, West 
Virginia in Deed Book 642, at page 281 and Book 84-A, at page 129 respectively, Columbia 
Gas Transmission Corporation granted to Columbia Natural Resources, LLC (predecessor in 
title to Chesapeake Appalachia, L.L.C.), all rights necessary for the PRODUCTION OF OIL 
AND GAS in all formations EXCEPT the interval from 250 feet above the top of the 
Greenbrier Limestone (inclusive of all Maxon sands) to 50 feet below the base of the Pocono 
Big Injun formation being reserved or operated for storage, hereinafter the "Sublease" and 
which Sublease has been modified and amended by that certain agreement dated June 1, 2007, 
and effective as stated therein (the "Sublease Agreement"); 



WITNESSETH: 



at Page 



^h e reinafter the "Lease" as modifi e d; and 



BOOH 669 »154 

WHEREAS, Lessors are now the owners of the oil and gas rights underlying the land 
covered by said Lease that is situate in Liberty District, Marshall County, West Virginia; and 

WHEREAS, Lessors and Sublessee, for their mutual benefit, with the consent of 
Sublessor, desire to amend and modify said Lease agreement in order to facilitate the 
formation of drilling units. 

NOW THEREFORE, in consideration of the premises and the sum of One Dollar 
($1.00) paid by the Sublessee to Lessors, the receipt of which is hereby acknowledged, and of 
the covenants hereinafter contained, Lessors and Sublessee hereby supplement and modify 
said Lease as follows, to- wit: 

DELAY IN MARKETING: In the event that Sublessee does not market producible 
gas, oil or their constituents from the Leasehold, or lands pooled/unitized therewith, Sublessee 
may continue to pay Delay Rental at the rate of Five Dollars ($5.00) per acre annually until 
such time as marketing is established, or until the end of the Sublease term, as it relates to the 
acreage described herein, if marketing is not established by that time. 

UNITIZATION: Lessors grant Sublessee the right to pool, unitize, or combine all or 
any part of the Leasehold with any other land, leased or unleased, whether owned by 
Sublessee or others, to create drilling or production units either by contract right or pursuant 
to governmental authorization. In the event of the unitization of the whole or any part of the 
Leasehold, Sublessee shall, either before or after the completion of a well, record a copy of its 
unit operation designation in the county in which the Leasehold is located. Sublessee is 
granted the right to change the size, shape, and conditions of operation of any unit created, 
without the consent of Lessors. As to such a unit, Lessors agree to accept and receive out of 
the production or the proceeds from the production of such unit, such proportional share of 
the royalty from each unit well as the number of acres in the Leasehold which may be 
included from time to time in the unit bears to the total number of acres in the unit. 
Otherwise, the drilling, operations for drilling or any operations in preparation for drilling, or 
any production from a well on such a unit shall have the same effect upon the terms of this 
Lease, as amended and modified hereby, as if the operations or well were on this Leasehold 
itself, except for the FREE GAS clause, of which the Lessor acknowledges is hereby 
expressly released and terminated by this Lease Modification. 

SHUT-IN: In the event that production of oil, gas, or their constituents is interrupted 
and not marketed for a period of six months, and there is no producing well on the Leasehold, 
or lands pooled/unitized therewith, Sublessee may thereafter, as Royalty for constructive 



BOOK 

production, pay a Shut-in Royalty equal in amount and frequency to the Delay Rental until 
such time as production is re-established and said payment shall maintain the above- 
referenced lease and modification in full force and effect to the same extent as payment of 
Royalty. During Shut-in, Sublessee shall have the right to rework, stimulate, or deepen any 
well on the Leasehold or drill a new well on the Leasehold in an effort to re-establish 
production, whether from an original producing formation or from a different formation. In 
the event that the production from the only producing well on the Leasehold is interrupted for 
a period of less than six months, the above-referenced Lease and Modification shall remain in 
full force and effect without payment of Royalty or Shut-in Royalty. 

SUBLESSEE shall have the right to perform geophysical studies through the use of 
seismic research and other means and methods not restricted to current technology. 

LESSOR ratifies the aforesaid Lease dated January 3 rd , 1962 and modification 
agr ee m e nt dat e d as hereby amended and modified, and acknowledges 

that it is a valid and subsisting Lease and shall remain in full force and effect according to the 
terms and tenor thereof unless otherwise specifically amended hereby. 

This agreement extends to and is binding upon the parties hereto, their respective 
heirs, successors, administrators, executors and assigns. 

WITNESS the following signatures and seals all as of the day and year above first 

written. 

JAN PEST 

MARSHALL County 11:18:21 AH 
Instrument No 1253673 
Date Recorded 06/04/2008 
Document Type Q£6 
Book-Page 669-153 
Rec/Preserve $5.0-0 $1.00 




COLUMBIA GAS TRANSMISSION CORPORATION 




BOOK 669 PAGE 156 



ACKNOWLEDGMENT 



STATE OF \IW Vitginta 
COUNTY OF C\\\n to-wit: 



On this the of 



, 20^, before me, 7%pn\eti A Le,% 



10- 



Notary Public, came Jack R. Hammers, a married man dealing in his sole and separate 
property, to me known (or to be satisfactorily proven) to be the individual(s) described in, 
and who executed the foregoing instrument, and acknowledged that they executed the same 
for the purpose therein contained. 

In witness thereof, I hereto set my hand and official seal. 



My commission expires on: £ C/£> 



ACKNOWLEDGMENT 



STATE OF WEST VIRGINIA 
COUNTY OF KANAWHA 



} ss. 
} 



On the \ C d day of fY\A*t , in the year 2008, before me, the 

undersigned, a Notary Public in and for said State, personally appeared 

personally known to me or proved to me on the basis of 
satisfactory evidence to be the individual(s) whose name(s) is(are) subscribed to the within 
instrument and acknowledged to me that he/she/they executed the same in his/her/their 
capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the 
person upon behalf of which the individual(s) acted, executed the instrument. 




rv Public I 



Notary Public 



This instrument was prepared by 
Chesapeake Appalachia, L.L.C. 
900 Pennsylvania Avenue 
Charleston, WV 25302 



OFFICIAL SEAL 
NOTARY PUBUC 
i STATE OF WEST VIRGINIA 
Ui« L Snyder 
1332 1 2 VWAvtnue 
Dunbftr, WV 25064 
fay Commisiion Expirea November 17, 2016 



STATE OF WEST VIRGINIA, MARSHALL COUNTY, SCT.: 



6-d 



I^JAN PES^ Clerk of the^Coun ^Commission of said County, do hereby certify that the annexed writing, bearing 

@ U was presented foj 



date on the *J-i43L„A*y oi/2jkkA^^~-^ 
above certificate as to the parties therein named this 



'tyjf-M-. t was presented ror^pd by me, admitted to record in my office upon the 
_„„day of. _o*clockflr_M, 



CPS 5M 2-oe 



Clerk.